• What is Land Tax?


    This video presents a quick overview of how land tax operates in Western Australia.
     
     
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    Land tax and Metropolitan Region Improvement Tax (MRIT)

    Land tax is an annual tax on land. It is based on land owned on 30 June and is calculated on the unimproved value of the land which is determined by the Valuer-General.

    Land tax applies to the total unimproved value of all land held by the same owners. For example, if you own two properties in WA valued at $250,000 each, land tax would be charged on the total aggregated value of $500,000.

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    Land tax rate scale for 2016-17

    Aggregated Taxable Value of Land Rate of Land Tax
      Not Exceeding
    $0 $300,000 Nil
    $300,001 $420,000 Flat rate of $300
    $420,000 $1,000,000 $300 + 0.25 cent for each $1 in excess of $420,000
    $1,000,000 $1,800,000 $1,750 + 0.90 cent for each $1 in excess of $1,000,000
    $1,800,000 $5,000,000 $8,950 + 1.80 cents for each $1 in excess of $1,800,000
    $5,000,000 $11,000,000 $66,550 + 2.00 cents for each $1 in excess of $5,000,000
    $11,000,000   $186,550 + 2.67 cents for each $1 in excess of $11,000,000

    See land tax rates for previous years.

     

    Metropolitan Region Improvement Tax

    MRIT
    is payable in addition to land tax on property located in the metropolitan area. The metropolitan region is defined by the following local government districts:

    Armadale Bassendean Bayswater Belmont Cambridge
    Canning Claremont Cockburn Cottesloe East Fremantle
    Fremantle Gosnells Joondalup Kalamunda Kwinana
    Melville Mosman Park Mundaring Nedlands Peppermint Grove
    Perth Rockingham Serpentine-Jarrahdale South Perth Stirling
    Subiaco Swan Victoria Park Vincent Wanneroo

     

    MRIT is imposed on property with a land tax liability at a rate of 0.14 cent for every dollar of the aggregated taxable value of the land in excess of $300,000. If land is not subject to land tax, it will not be liable for MRIT.

    Please refer to our online calculator to calculate your land tax and MRIT liability.

     

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    Calculation of land tax

    Land tax and MRIT are calculated on the aggregated taxable value of all land held in the same ownership (excluding exempt land) at midnight on 30 June. Since July 2009, any increase in an unimproved valuation of an individual land item has been capped to a maximum of 50 per cent of the previous year’s valuation. This helps to reduce the volatility and unpredictability of growth in individual land tax and MRIT bills from significant land value increases. The taxable value for land is the lesser of the current unimproved value of the land or 150% of the previous year’s unimproved value.

    The amount of land tax payable is calculated by applying the appropriate rate of tax to the aggregated taxable value of land in the same ownership. Use the online calculator to calculate your land tax liability.

    calculations

    For example, if you owned two taxable properties in WA with taxable values of $200,000 and $300,000 respectively, the tax is assessed on $500,000 at the rate shown in the table above.

    Generally, only land owned by the same owners is aggregated. For example, land that is owned solely by you is not usually aggregated with land you own jointly with another person or with land that you have an interest in through a company or trust. In such circumstances, a separate assessment notice is issued.

    IMPORTANT: If all the land you owned under the same ownership at 30 June 2016 is not shown on one assessment, please notify the Office of State Revenue before the due date shown on your Notice of Assessment.

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